Explain why a long hedger’s position worsens if the basis strengthens unexpectedly and improves when the basis weakens unexpectedly. [10 marks]

30005

yes ok                                            

the answer is:

the correct option is the option b.

to calculate the surface area of the right cylinder, we need to use the following formula:

from the picture we know that:

so, substituting and calculting we have:

hence, we have that the correct option is the option b.

have a nice day!

time is equal to distance over rate so

t = d/r

need a little bit more information for the second question.